Planet Reports First Quarter Fiscal 2023 Financial Results – Parabolic Arc
Continued acceleration with record first quarter revenue of $40.1 million
Received the Landmark EOCL Award from the US National Recognition Office (NRO)
Revenue growth rate expected to more than double year-over-year for FY23
SAN FRANCISCO (Planet Labs PR) –Planet Labs PBC (NYSE: PL) (“Planet” or the “Company”), a leading provider of daily Earth data and information, today announced its fiscal first quarter financial results for the period ended April 30, 2022, demonstrating the acceleration of growth and momentum of its unique data subscription business.
“Our first quarter results are strong across the board and show continued acceleration in growth. Our products are unique to the industry and we are seeing growing demand across a diverse set of verticals,” said Will Marshall, co-founder, CEO and President of Planet “Last month, we were proud to receive a landmark award from the NRO for the EOCL contract – Planet’s largest contract to date. This award demonstrates the significant value that Planet’s commercial approach and unique datasets can bring to government and the industry at large.We have long believed that commercial and shareable satellite imagery not only provides government with differentiated information, but also increases transparency, promotes peace and enhances security.
Ashley Johnson, Planet’s CFO and COO, added, “For the first quarter of fiscal 2023, we increased our revenue growth rate to 26% year-over-year, surpassed the reached 800 customers and ended the quarter with $484. million in cash on the balance sheet. Our visibility on activity has increased and we are therefore tightening our guidance range for the current year. We expect revenue growth to continue to accelerate, as shown by our guidance for the second quarter, reflecting 38% year-over-year growth at the midpoint. Planet continues to demonstrate its ability to move quickly to meet growing market demand as it arises, and we are extremely pleased with how we are executing our plan.
Financial highlights and key indicators for the first quarter of fiscal 2022:
- First-quarter revenue increased 26% year-on-year to $40.1 million.
- The percentage of annual recurring contract value (ACV) for the first quarter was 92%.
- The number of customers at the end of the period (EoP) increased by 23% year-on-year to reach 826 customers.
- The net dollar retention rate for the quarter was 105% with and without winback.
- First quarter gross margin increased to 41% from 40% in the first quarter of Fiscal 2022. First quarter non-GAAP gross margin(1) increased to 45% from 41% in the first quarter of fiscal 2022.
- Ended the quarter with $484 million in cash and cash equivalents and no debt.
(1) Please see “Planet’s Use of Non-GAAP Financial Measures” below for a discussion of how Planet calculates the non-GAAP financial measures presented herein. In addition, please find below a reconciliation to the most directly comparable US GAAP financial measure.
Development of customer and partner relationships:
- EOCL: Planet Labs Federal, Inc., a wholly owned subsidiary of Planet, has been selected by the NRO for the award of the EOCL (Electro-Optical Commercial Layer) contract. Planet Federal’s EOCL award will provide the NRO and its partners with access to Planet Federal’s daily high- and medium-resolution satellite imagery for an initial period of up to five years, with options to extend the contract for up to to a total duration of the contract of 10 years. With this award, users will also gain access to Planet’s unparalleled archive dating back to 2009.
- Bayer: Planet has signed an expansion agreement with Bayer AG, a global company with key competencies in life sciences, health and nutrition, to develop digital solutions to support sustainable agriculture and improve supply chain efficiency. Using Planet’s Fusion data, along with high-resolution SkySat data, can help better understand historical and in-season performance, and enable their data scientists to generate valuable insights that have the potential to support production. worldwide.
- Moody’s: Planet has entered into an agreement with Moody’s, one of the world’s leading integrated risk assessment firms serving the financial markets, to explore and meet the growing demand for environmental, social risk assessment and monitoring solutions and governance (ESG). Planet and Moody’s plan to determine how Planet’s high-speed geospatial data and data, methodologies and products from Moody’s market-leading entities can be leveraged to further refine Moody’s existing offerings covering ESG, insights customer, supply chain and commercial real estate via real-time field information.
Build new technologies and missions:
- Pelican Next Generation High Resolution Satellites: Planet has announced specifications for its next generation of high resolution satellites. Pelican is expected to meet the changing needs of customers who want real-time information about world events as they unfold – from floods and wildfires to conflicts and human rights threats. Pelican is designed to image up to 30cm resolution and upload images from the same location 12 times per day, and up to 30 opportunities at mid-latitudes.
Support Ukraine’s response:
- Planet remains committed to transparency and accountability and will continue to help others take advantage of its services in a timely and responsible manner, including between governments, NGOs and the media.
- Planet works with and provides data to nearly 30 NGOs and intergovernmental bodies who use Planet data to support a number of humanitarian operations in Ukraine, such as: civilian evacuation and planned mine clearance operations; conducting building damage assessments; monitoring of alleged human rights violations; and trying to mitigate and measure impacts on global food security.
Impact and education:
- Planet’s strong education and research (E&R) program has led to the use of its satellite data in more than 2,000 publications. Planet’s E&R program often leads to new use cases for Planet’s data and better predictions of resulting economic and geopolitical effects.
- Planet announced that PlanetScope and SkySat data from Planet has officially joined the European Space Agency (ESA) third-party mission program. Through ESA’s Earthnet programme, researchers, scientists and businesses around the world can request access to Planet’s high-frequency, high-resolution satellite data for non-commercial purposes.
For the second quarter of fiscal 2023, Planet expects revenue to be between approximately $41 million and $43 million, representing 38% year-over-year growth at the midpoint. Non-GAAP gross margin is expected to be between approximately 44% and 46%. Adjusted EBITDA is expected to be between approximately ($18) million and ($16) million. Capital expenditures as a percentage of revenue are expected to be between about 12% and 14% of revenue for the second quarter.
For fiscal 2023, Planet has updated its revenue outlook and expects it to be between about $177 million and $187 million. Non-GAAP gross margin is expected to be between approximately 47% and 49%. Adjusted EBITDA is expected to be between approximately ($70) million and ($60) million. Capital expenditure as a percentage of revenue is expected to be between about 11% and 13% for the full year 2023.
Planet has not reconciled its non-GAAP gross margin outlook, which is derived from non-GAAP gross profit, and adjusted EBITDA outlook with their most directly comparable GAAP measures (gross profit and net loss, respectively) because that certain items that impact gross profit and net loss, such as stock-based compensation expense and (in the case of Adjusted EBITDA) depreciation and amortization, are uncertain or beyond our control of Planet and cannot be reasonably foreseen. The actual amount of these expenditures in the second quarter of fiscal 2023 and fiscal 2023 will have a material impact on Planet’s future GAAP financial results. Accordingly, a reconciliation of non-GAAP gross margin outlook and adjusted EBITDA outlook with gross profit margin and net loss, respectively, is not available without unreasonable effort.
The foregoing forward-looking statements reflect Planet’s expectations as of today’s date. Due to the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially.
Webcast and Conference Call Information
Planet will host a conference call at 5:00 p.m. ET / 2:00 p.m. PT today, June 14, 2022. The webcast can be accessed at www.planet.com/investors/. A replay will be available approximately 2 hours after the event. If you prefer to register for the conference call, please click on the following link: https://ige.netroadshow.com/registration/q4inc/10942/planet-labs-pbc-fiscal-first-quarter-2023-earnings-call/. You will then receive your access data by e-mail.
Additionally, an additional overview of the 1Q’23 fiscal year update has been made available on Planet’s Investor Relations page.
About Planet Labs PBC
Planet is a leading provider of daily satellite imagery and global geospatial solutions. Planet’s mission is to image the world on a daily basis and to make change visible, accessible and achievable. Founded in 2010 by three NASA scientists, Planet designs, builds and operates the largest fleet of Earth observation imaging satellites, capturing more than 30TB of data daily. Planet provides critical data, advanced information and software solutions to more than 800 customers, including the world’s leading agriculture, forestry, intelligence, education and finance companies and government agencies, enabling users to simply and efficiently derive unique value from satellite imagery. Planet is a public benefit corporation listed on the New York Stock Exchange as PL. To find out more visit www.planete.com and follow us on Twitter.